BOARD MEETING DATE: June 1, 2007
AGENDA NO. 36
PROPOSAL:
Adopt Position on Proposal by Ports of Los Angeles and Long Beach to Implement Heavy-Duty Truck Replacement and Retrofit Measure in Clean Air Action Plan
SYNOPSIS:
The Ports of Los Angeles and Long Beach are developing a heavy-duty truck replacement and retrofit program to control emissions from port drayage trucks. A key element being considered would limit trucks entering port property to those operated by companies entering concession agreements with the ports. Conditions of the agreements would require replacement and retrofit of trucks to reduce emissions.
COMMITTEE:
Marine Port, May 25, 2007; Recommended Support in Concept
RECOMMENDED ACTION:
Adopt position of “support in concept” regarding heavy duty truck retrofit and replacement program proposed by staffs of the ports of Los Angeles and Long Beach, and direct AQMD staff to communicate this position to the ports.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
A key emission control measure included in the Clean Air Action Plan (CAAP) adopted by the Ports of Los Angeles and Long Beach calls for retrofit and replacement of trucks transporting containers to and from the ports. Modernizing these drayage trucks is among the ports’ most daunting challenges. Such trucks are a significant source of air pollution -- accounting for 23 percent of the port-related diesel particulate and 34 percent of the nitrogen oxides (NOx) emissions, but many truck operators have limited financial ability to afford replacement or retrofit. Controlling port truck emissions is also an important part of the region’s attainment strategy. The Draft 2007 AQMP includes a control measure based on the CAAP truck measure. In addition, at its November 2006 meeting, the Board set aside $36 million in Carl Moyer funds over five years (Moyer Program Years 9 to 13) to assist implementation of port truck emission control programs. This is in addition to $6 authorized by the Board from year 8 Moyer funds to assist in purchasing LNG trucks for port service.
Proposed Clean Trucks Program
The staffs of the two ports recently developed and released for public comment a proposed Clean Trucks Program to implement the truck measure in the CAAP. The Harbor Commissions of the two ports are expected to consider approving the proposed program in early July 2007. A 24-member stakeholder group appointed by the mayors of the cities of Los Angeles and Long Beach is one forum in which comment on the program is being received by the ports. The stakeholder group consists of representatives of industry, labor, environmental groups, the medical community, and government -- including the AQMD.
Details of the proposed program are still being developed by the ports in consideration of public and agency comments. The program is intended to cut air pollution from port trucks by more than 80 percent within five years, as proposed in the CAAP. Under the program, truck owners will scrap and replace the oldest of approximately 16,000 trucks working in the ports, and retrofit the others, with the assistance of a port-sponsored grant subsidy.
Specifically, beginning in 2008, the ports will use their tariff (i.e. rulemaking) authority to limit trucks entering the ports to those operated by companies signing concession agreements with the ports. The concession agreements will require trucks entering port property to meet CAAP standards, which are defined as one of the following: model year 2007 or newer trucks, retrofitted trucks manufactured in 1994 or later, or trucks that have been replaced through the Gateway Cities Truck Modernization Program. The program will be phased in and, year by year, the oldest trucks will be barred from the ports until only trucks meeting the CAAP standards will be permitted access. Model year 2007 and newer trucks are 90 percent cleaner than older trucks.
Under the proposed program, licensed Motor Carriers (trucking companies) will be required to pay a “nominal” license fee to obtain a concession, and after a transition period, would have to directly own, operate and maintain their truck fleet and employ drivers to deliver drayage services. While older, un-retrofitted trucks would continue to work in the ports during the transition period, they would be subject to a Truck Impact Fee each time they enter a terminal gate. The amount of the fee is being determined, but is likely to be approximately $34 for each inbound container terminal gate move. The Truck Impact Fee will be assessed to the Licensed Motor Carriers, who will be granted a concession, and not the truck drivers. Trucking companies may pass this cost on to their customers (cargo owners, third-party logistics providers, etc.). Once fleet turnover (estimated to take five years) is completely funded, the ports will stop collecting the Truck Impact Fee. The Truck Impact Fee would be set at an amount sufficient with port operating funds, AQMD Carl Moyer funds, and potentially State Proposition 1B bond funds to provide the ports with up to $1.8 billion to subsidize the purchase of new and retrofitted trucks by the concessionaire trucking companies.
The proposed program would substantially change the current system of port drayage. Under the current drayage trucking system, Licensed Motor Carriers (LMCs) have contracts with the cargo owners for moving the cargo to and from the ports. The LMCs provide dispatch and other logistics coordination services, and contract with independent truckers to perform the drayage services. According to the ports, the current drayage system has adverse impacts on air quality, vehicle safety, and port terminal security. Under the proposed program, concessionaires will be responsible for the operation and maintenance of the truck fleet funded by port grants, and for safety, security training, and compliance of their drivers. The Licensed Motor Carriers will be encouraged through the concession system to give hiring priority to truck owner/operators currently serving the ports.
Additional details of the proposed program are included in the attachments to this letter.
Proposed AQMD Position
Due to the importance of the CAAP truck replacement and retrofit measure for achieving the emission reduction goals of the CAAP and AQMP, the staff recommends that the Board take a position regarding the proposed Clean Trucks Program. This will allow staff to convey comments consistent with Board direction as part of the stakeholder process. The position staff recommends is to support the proposed Clean Trucks Program in concept. The reasons for this recommendation are as follows:
- Staff believes the key criteria for any program to implement the CAAP truck measure should be: (1) achieving emission reductions equivalent to those stated in the CAAP and AQMP, and (2) assurance that such reductions will actually occur.
- The port staff have stated that the Clean Trucks Program will include criteria for which model year trucks must be retrofitted or replaced that will ensure that the emission reductions stated in the CAAP (under the recommended scenario of truck replacement/retrofit stated in that plan) will be achieved. This amount of emission reductions will be sufficient to implement the draft AQMP.
- Staff believes that the concession system proposed Clean Trucks Program can provide assurance that emissions reductions will occur due to the enforceability of contractual conditions in the concession contracts. In addition, concession conditions could require maintenance of trucks and ensure that concessionaires have adequate resources to implement such a requirement.
- Staff proposes that the AQMD’s support be “in concept” because details of the program are still being worked out by the ports.
Finally, staff notes that industry representatives have proposed that, in lieu of the concession system proposed by the ports, a statewide truck program be utilized based on standards to be adopted by CARB. They state that an element of such a program could be a fee on trucks not meeting such standards that would be imposed by terminal operators to create an incentive for early introduction of cleaner trucks. The industry representatives have stated concerns that the concession system would reduce competition. The ports have stated that there will be no limit to the number of trucking firms that could obtain concessions (although criteria for concessionaires are still being developed). The AQMD staff recommends support of the proposal put forth by the ports for the reasons stated above and because it does not rely on a CARB rulemaking that will likely not occur until 2008, and that is of uncertain stringency. CARB has proposed a port truck regulation that, as currently drafted, likely would not achieve the amount of emission reductions proposed by the ports and the AQMP.
Proposal
The AQMD staff recommends that the Board adopt a position of “support in concept” regarding the Clean Trucks Program proposed by staffs of the ports of Los Angeles and Long Beach, and direct AQMD staff to communicate this position to the ports.
Resource Impacts
None from taking this action
Attachments (EXE 5mb)
- Clean Trucks Program Staff Proposal Program Elements (PowerPoint submitted by ports to AQMD Ports Committee)
- Ports’ Fact Sheet
- Ports’ Q & A
- List of Stakeholder Group Members